Cosmetics firm targets provinces

DHC (Thailand), importer and distributor of DHC cosmetics and skincare products from Japan, yesterday announced its 2007 strategy to penetrate provincial markets after witnessing good potential since it entered Thailand in 2004.
President Tassanee Ratanaruangrai said the company expected to expand its members from 60,000 to between 75,000 and 80,000 by the end of this year, with total sales expected to increase from Bt450 million to Bt500 million. This year, the company has allocated Bt200 million as a marketing budget, double that of last year, to advertise through various media channels and to arrange activities including road shows in many provinces. It has also its own channels - Olive Club magazine and a website - to keep updating products for its members. DHC's vice president Wisarn Meksamanansak said the proportion of provincial sales had increased from 30 per cent early last year to 50 per cent now. He said provincial consumers spend around Bt3,000 per time, while Bangkok people spend Bt2,000 per time, although their purchasing frequency is greater. DHC's head of marketing Arporn Supmonchai said the business applies a "beauty delivery" system. Consumers have to call its call centre to order and the company will send products to their homes, in one to two days for Bangkok people and two to three days for consumers in country areas. "Core customers are working women aged between 25 and 35. The brand has also broadened its target customers to men who are interested in taking care of their skin. A new line-up of products has been introduced to suit working men, who find it more convenient placing telephone orders rather than shopping for cosmetics at retail stores," said Arporn. Last year, the company invested Bt40 million in computer software and Bt25 million to install a telephone network. It plans to launch a new product line - food supplements - in the second quarter, expecting the sales proportion to be 70 per cent from skincare and the rest from food supplements and health food. Nitida Asawanipont The Nation
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